A Responsibility That Should Be Assigned to a Specific Employee

question 16

Multiple Choice

A responsibility that should be assigned to a specific employee and not shared jointly is that of:

• A)Access to the company's safe deposit box
• B)Placing orders and maintaining relationships with a prime supplier
• C)Attempting to collect a particular delinquent account
• D)Custodianship of the petty cash fund

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Labor Rate Variance

A specific type of variance that measures the difference between the actual hourly wage paid to workers and the standard rate expected.